Carnegie, Rockefeller, and Success

 America’s First Big Business  Railroads combine and corporations are formed (helped by the government)  Cornelius Vanderbilt dominated the industry and became extremely wealth (2 nd in history) "Gentlemen: you have undertaken to cheat me. I won't sue you, for the law is too slow. I'll ruin you. Yours truly, Cornelius Vanderbilt."

 Vertical Integration- own all means of production from the top down (you cut out the middle man and cut costs)  Horizontal Integration- take control of all the companies that make the same product How would you vertically or horizontally integrate your lemonade business?

Doesn’t he look like the guy from Jurassic Park?

 Scottish immigrant who achieved the “rags to riches” dream (the best example of this)  Built steel mill in 1870 and focused on cutting costs and keeping prices low  Practiced vertical and horizontal integration  Carnegie Steel becomes the World’s largest corporation  Sold company to J.P. Morgan for $450 million

YES, HE IS A BAD GUYNO, HE IS A GREAT GUY  He cut costs and workers salaries  Violently and ruthlessly ended the homestead strike  Helped keep workers in state of pauperism  Created unsafe and difficult conditions for his workers  He created thousands of jobs with his industry  He helped create products and technological developments that benefitted society  He was a great philanthropist and donated over $300 million to charity Henry Clay Frick

I’m thinking of growing a moustache like this…

 Founded Standard Oil Company in 1870  Scrutinized every aspect of production to cut costs  Advertized heavily and was a master of marketing  First Horizontal, then Vertical  Consolidation > Competition

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 Pools- informal agreements to set rates, prices, and business  Trusts- stockholders transfer control to a board of trustees  Holding companies- One major corporation would buy the stock and exert direct control Example: Standard Oil in New Jersey